NILO plans to issue plastic credits from its facilities that convert plastic waste into adhesives for composite wood products. Verification of NILO’s pilot facility is expected in October 2025.

The plastic credit market is an emerging financial mechanism designed to combat plastic pollution by allowing organizations to offset their plastic footprint and supporting companies working to collect, recycle or transform plastic waste. Modeled after carbon credits, plastic credits represent the removal or recycling of a specific amount of plastic waste—typically one kilogram or tonne—by certified waste management activities. The goal is to support a circular economy and reduce the volume of plastic entering landfills, oceans, and natural ecosystems.

How It Works

The plastic credit system involves the issuance, verification, and trading of credits, facilitated by several key players:

1. Plastic Recovery - These organizations and companies collect, sort, recycle and transform plastic waste into valuable goods.
2. Certification and Standard-Setting Bodies – These groups set the rules and ensure transparency and accountability. 
3. Buyers (Corporations) – Companies purchase credits to offset their plastic usage or to meet ESG and sustainability goals. Notable corporate participants include Nestlé, Unilever, Tata Consumer Products, and Colgate-Palmolive.
4. Marketplaces and Platforms – These digital platforms connect buyers with verified projects. Key platforms include:
   
   • PCX Markets
   • RePurpose Global
   • Verra Registry

There are three different credit types that can be issued and purchased.

• Recycling Credits: Largest market share; awarded for verified recycling activities.
• Upcycling Credits: Fastest-growing segment; for transforming waste into higher-value products.
• Collection Credits: For removing plastic from the environment, including ocean-bound waste.
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The trading of Plastic Credits is a growing market. August 2025 statistics show that PCX Markets has managed 141,000 tonnes of worth of credits across 44 projects around the globe. Current plastic credit prices vary per project from US $90 to $1690 per tonne. 

The plastic credit market is an innovative tool in the global fight against plastic pollution, with growing participation from both NGOs and major corporations. For it to succeed and scale sustainably, the market must continue to evolve toward stro. nger verification, standardization, and transparency.

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